An unpleasant beginning for German behemoth Metro Cash & Carry in this tech city in October 2003 has driven the company to pick states where the rules help prop up its bottomline.
In addition to two centres here, the company has added one distribution centre in Hyderabad and plans one each in Kolkata and Mumbai this year.
In Bangalore, the company was forced to endure a bitter experience because it could not secure the license to sell vegetables, fruits and similar products known as “HORECA” items (ones required by Hotels, Restaurants and Canteens).
With such a license, the company’s revenues would have increased by 25 per cent to 30 per cent. Besides, it would have supported a new network among farmers, with their produce making their way to the shelves at Metro, said sources.
The sources said the then government had assured an amendment to the Agricultural Produce Marketing Committee (APMC) Act in order to help Metro sell these products.
The amendment was put on hold particularly in view of protests by the Bangalore Traders Action Committee and activists of the Swadeshi Jagran Manch during the launch of Metro’s first Indian distribution centre at Yeshwanthpur, Bangalore. “We were handicapped by not being able to sell vegetables and fruits here,” the sources added.
Metro, the first B2B distribution centre with 100% FDI, employed Feedback Consulting Ltd to gauge the purchasing pattern of prospective customers in this space.